Transforming old business and service models to new digital business

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1 Fortum City Solutions Transforming old business and service models to new digital business Ville Koivumäki / Head of City Solutions IT /

2 This is Fortum

3 City Solutions snapshot Heating and Cooling 2017 netsales: EUR 689m (incl. Oslo) District heating and cooling; production and networks Finland, Poland, Baltics Recycling and Waste Solutions 2017 net sales: EUR 293m Detoxification, Recycling & energy, Environmental construction Finland, Sweden, Denmark (Norway) Fortum Oslo Varme 2017 net sales: NOK 1216m Oslo area; district heating and cooling (WtE and other sources) 50/50 with the City of Oslo, Board actively involved in steering Power Solutions 2017 sales: EUR 40m Nordics and global International O&M, Performance Solutions, TGS (IT) Fortum Värme 2017 net sales: EUR 689m Stockholm; district heating and cooling 50/50 with the city of Stockholm, governed through the Board Co-operation on market terms 4 City Solutions Strategy

4 Development

5 How Development Happens? Internal External Risks Customers Problems Regulation Change Drivers What is the common success ratio? 6

6 Prerequisites for Succesfull Development UNDERSTANDING through thinking (and testing ) COMMITMENT through understanding (or strong believe ) USE THESE FOR Modelling Communications 7 POWER UP!

7 Understanding

8 Digitalization is more than just technology Deliver me this! Technology / IT Solution Competitors Data Digitalization How you are you going to use it? Actors / Vendors Processes Change & Leadership People 9

9 Business Technology concept / framework (by Sofigate) Understood well by the business as it is simple enough Explains the technology use cases in common language Product Technology Data, Infrastructure and Security Business Process Technology Explains why things might get complicated! Customer Interfacing Technology Operational Technology Business process technology Systems that support day-to-day business processes Operational technology Systems to manage and operate automation Product technology Information technology in products Customer interfacing technology Digitalization of customer interfacing processes and services 10

10 Development areas in Heating & Cooling Smart City heating system Customer offerings Heat System Smart building solutions Main products Operational efficiency Flexible supply of H&C Smart Living (premium) Building optimization (basic) Other solutions and services Other building related services Other value added products Maintenance services Energy efficiency services Heating control (lite) Monitoring service Leasing services Individual settlements Heating & cooling products Customer interfaces Customer service Two way communication Data storage Settlement & invoicing CRM Predictive maintenance Demand side response (DSR) Centralized control rooms Autonomous heat systems Fuel hubs System Optimization Logistics Open district heating Smart grid Heat storages Waste heat Data centers CHP (security of supply) Power to heat Ground heating HOB (bio, waste, multi) 11

11 Business Ecosystem Modelling Waste Producer Smart Bin Money I need service Information Waste Management Service Provider Container manufacturer Sensor Manufacturer SmartBin Manufacturer Trasportation Company Logistics Planner 12

12 Business Capability Mapping What instead of How People Process Business language Many Use Cases Business Development Competence Development Investments Pace-Layering (Gartner) Etc Technology The journey is almost as important as the destination Gets interesting when developing new Business Capabilities 13

13 Select the tools that you need Business Capabilities / Processes Business Capabilities / Applications Processes / Roles Processes / Applications Data Entities / Business Capabilities Etc Be agnostic and use only when needed! Use and forget? 20/80? 14

14 Understanding Data

15 16

16 Your Data is an Asset What is your Vision and Strategy over Data and/or Information Management? How you are going to utilize Data and Technology in your Business Strategy? Understand your Data Define and document ER modelling! Assess your data Manage Master Data Management Data Governance Storage Use Reporting Analytics Big Data Stream/real time Sell Data Monetization API economy Care for your Data! OLD WORLD NEW WORLD Makes your life easier in new world 17

17 When speaking of data Contextualize your data I need an customer profitability report Our data quality is not good Pre-/postfix Have your definitions available What/Who is a Customer? Use your common Business Vocabulary Outside In vs. Inside Out? Communications! Use examples from other companies/industries How to put in your business context? 18

18 Fortum Data Platform Technology Strategy 2018: Easy Data Access 2019: Modern Analytics 2020: On the Cutting Edge Data Lake based on technology X Fast time to market for planned uses cases Gathered competence Non-X based business solutions OK. IoT DW Data Lake DATA PLATORM Next Day Delivery of Data Access Backend systems X Sensor Data Hydro Data Heat Data Data Catalogue Data Lake External Data Principles & Support for Frotum Developers Scalability with partners Evolving Data Analytics Capabilities Best of breed analytical capabilities for applications and analysts Best practices develop as technologies evolve May or may not develop into preferred technology Data Access Services Analytics Services DATA PLATORM Next Day Delivery of Data Access ML, AI, Insights, Enriched Data X X Y Decoupled Data Interface Data Catalogue Data Lake* Connectivity Analysts and Engineers can work in both technologies Following new trends in Data & Analytics Ability to adapt to new inventions and lead development on the market Fortum part of the global data eco-system with multiple technologies New products and services Analytics Services DATA PLATORM X? X? Y Industry Ecosystem Data Lake Next Gen. Storage 19

19 Commitment

20 Commitment is the key! Proper development cannot happen if there is no commitment Commitment cannot happen without understanding (or super strong believing) Commitment requires good communications Works Top-Down & Bottom-up 21

21 22

22 Don t explain how brilliant you are 23

23 but get the outcomes that you are after! What is your message? Simplify, simplify, simplify! Outcomes over actions! Who you are talking to? Adjust your message to your audience Repetition is the mother of learning! 24

24 Conclusions

25 Conclusions Ownership, Commitment and Understanding Technology is just a tool Be curious Don t over-engineer Communications! 26

26 Thank You! Questions & Answers Ville Koivumäki Head of City Solutions IT Mobile